financial stability report - Banka Qendrore e Republikës së Kosovës
financial stability report - Banka Qendrore e Republikës së Kosovës
financial stability report - Banka Qendrore e Republikës së Kosovës
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Number 3<br />
Financial Stability Report<br />
5. Financial Sector in Kosovo<br />
5.1. General Characteristics<br />
Financial sector in Kosovo<br />
continued to be characterized by a<br />
satisfactory level of <strong>stability</strong> in<br />
2012, while the overall <strong>financial</strong><br />
sector assets marked a slowdown<br />
in the growth trend. By June 2012,<br />
the total <strong>financial</strong> sector assets<br />
amounted to euro 4.8 billion,<br />
reflecting a slowdown to 4.8<br />
percent in June 2012, from 13.2<br />
percent in June 2011. While<br />
commercial bank assets continued<br />
to dominate the structure of<br />
Figure 17. Structure of assets of the <strong>financial</strong><br />
system by sector<br />
0.2<br />
4.1<br />
3.1<br />
16.7<br />
June 2011<br />
<strong>financial</strong> sector assets with 74.6 percent of total assets in June 2012, the slowdown of their<br />
growth trend has influenced the overall growth trend of <strong>financial</strong> sector assets. In June<br />
2012, banking system assets recorded an annual increase of 6.0 percent, compared with the<br />
annual growth rate of 12.7 percent in the same period of the previous year. The second<br />
largest sector participating in total <strong>financial</strong> sector assets are pension funds which in June<br />
2012 accounted for 18.6 percent of total assets (16.7 percent in June 2011) (Figure 17).<br />
The number of <strong>financial</strong> institutions in Kosovo’s <strong>financial</strong> sector has not shown any<br />
significant change recently. The number of commercial banks has remained unchanged,<br />
standing at eight (8) banks, while the insurance industry has 2 new companies increasing<br />
the total number of insurance companies to 13. Including 19 microfinance institutions, 36<br />
<strong>financial</strong> auxiliaries and 2 pension funds, the country’s <strong>financial</strong> sector is comprised of 78<br />
<strong>financial</strong> institutions (Table 4).<br />
75.9<br />
Commercial banks<br />
Insurance companies<br />
Micro<strong>financial</strong> institutions<br />
Financial auxiliaries<br />
Pension funds<br />
Source: CBK (2012)<br />
0.0<br />
3.4<br />
3.4<br />
18.6<br />
June 2012<br />
74.6<br />
Commercial banks<br />
Insurance companies<br />
Micro<strong>financial</strong> institutions<br />
Financial auxiliaries<br />
Pension funds<br />
Table 4. Number of <strong>financial</strong> institutions<br />
Description June 2009 June 2010 June 2011 June 2012<br />
Commercial banks 8 8 8 8<br />
Insurance companies 11 11 11 13<br />
Pension funds 2 2 2 2<br />
Financial auxiliaries 28 29 32 36<br />
Microfinance institutions 19 17 17 19<br />
Source: CBK (2012)<br />
The value of Net Foreign Assets (NFA) 4 of the <strong>financial</strong> sector continued to grow in 2012,<br />
but the growth was slower compared to 2011. By June 2012, the value of NFA amounted to<br />
euro 2.08 billion, which represents an annual increase of 4.7 percent (14.7 percent in June<br />
4 In this context, <strong>financial</strong> sector consists of Central Bank of the Republic of Kosovo and all <strong>financial</strong> institutions operating in Kosovo.<br />
32 |